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M/I Homes, Inc. (NYSE:MHO), a homebuilder with a market capitalization of $4 billion, announced Thursday that it has entered into a Seventh Amendment to its unsecured revolving credit facility, increasing the total lender commitments to $900 million from $650 million and extending the maturity to September 18, 2030. The company, which according to InvestingPro analysis is currently trading below its Fair Value, disclosed the changes in a statement based on a filing with the Securities and Exchange Commission.
The amended agreement includes an accordion feature, allowing M/I Homes to request an increase in the maximum borrowing availability up to $1.05 billion, subject to additional lender commitments and other terms. This expansion aligns with the company’s strong financial position, as InvestingPro data shows its liquid assets significantly exceed short-term obligations with a current ratio of 7.49.
Interest on amounts borrowed under the credit facility is payable at various term secured overnight financing rate (SOFR) options plus a margin. The amendment reduces the SOFR margin to 150 basis points from 175 basis points, based on the company’s leverage ratio as of June 30, 2025. The margin may be adjusted in future quarters depending on changes in the leverage ratio.
The company also reported that the quarterly commitment fee on the unused portion of the facility was reduced by 5 basis points to 25 basis points, with the fee also subject to adjustment in subsequent quarters based on leverage. Additionally, the amendment increases the borrowing base advance rates for certain inventory categories used to calculate available credit.
As of June 30, 2025, M/I Homes reported no outstanding borrowings and $88.5 million in letters of credit issued under the credit agreement. The company maintains a moderate debt level of $1.03 billion, demonstrating prudent financial management. For deeper insights into M/I Homes’ financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers this and 1,400+ other US stocks.
Certain lenders involved in the amended facility also participate as lenders or serve as administrative agents under a $300 million mortgage repurchase agreement with M/I Financial, LLC, a wholly owned subsidiary of M/I Homes.
All information is based on a press release statement and the company’s filing with the SEC.
In other recent news, M/I Homes reported record revenue for the second quarter of 2025, reaching $1.2 billion, which exceeded expectations by 7.14%. Although earnings per share were $4.42, matching forecasts, this represented a decrease from the previous year. M/I Homes also announced an amendment to its credit agreement, increasing its borrowing capacity to $900 million and extending the maturity to September 2030. The company maintained a cash position of $800 million as of June 30, 2025, with a homebuilding debt-to-capital ratio of 18% and a net debt-to-capital ratio of negative 3%. Additionally, S&P Global Ratings revised its outlook on M/I Homes to positive from stable, citing strong credit metrics and a robust balance sheet. The rating agency highlighted the company’s ability to maintain credit quality during a market downturn. These developments indicate M/I Homes’ ongoing efforts to strengthen its financial position and navigate industry challenges.
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